Negligent Misstatement

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1. What is the case to explain the difference between consequential economic loss and pure economic loss?

  • DERRY V PEEK
  • CAPARO V DICKMAN
  • SPARTAN STEEL V MARTIN
  • CHAUDHRY V PRABHAKER
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2. LORD DENNING gave a dissenting judgment in CANDLER saying what?

  • A duty of care is owed when the representor knew his statement would be showed and when the representor knew his statement would be relied on
  • Described a 'special relationship' as 'equivalent to contract'

3. Does the discussion of law have persuasive or binding authority?

  • Persuasive
  • Binding

4. Duty of care owed for pure economic loss established in what case?

  • GORHAM V BT AND OTHERS
  • HEDLEY BRYNE V HELLER
  • ESSO PETROLEUM V MARDON
  • DERRY V PEEK

5. What happened in DERRY V PEEK?

  • Agreement to prevent C from gambling, breached duty but failed because C could've bet somewhere else.
  • Investor asked insurance company for advice on an investment and sued for the negligent advice given. D not liable.
  • D said they had a licence to runs trams, C sued when they invested and lost money when the licences weren't granted. D not liable.
  • Involved health food franchises

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